Thousands lose state health insurance

Published 9:36 am Wednesday, August 15, 2012

ST. PAUL — More than 3,000 people have been kicked off the state’s health insurance plan.

An audit found they are ineligible relatives of state employees. The audit of 34,000 Minnesota employees required workers to submit tax returns, birth certificates and marriage licenses to prove their family members were eligible for coverage.

Management and Budget Commissioner Jim Schowalter said 770 state workers didn’t respond to the audit, which resulted in 1,600 dependents losing coverage.

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Schowalter said that he expects the audit results will save the state about $10 million.